Since January, the Trump administration's policy of blocking foreign oil shipments to Cuba has severely impacted the island's economy, particularly its renowned cigar industry. This move has created a critical fuel shortage, directly threatening the livelihoods of thousands and forcing significant price increases on luxury goods, according to industry observers. Many Cubans, like veteran cigar roller Elena Herrera, now face daily struggles reminiscent of past economic crises.
Just steps from the vibrant pulse of Old Havana, a quiet despair settles over Esteban García's cigar shop. The mahogany shelves, once laden with premium Habanos, now stand conspicuously empty behind heavy glass. "We haven't received a shipment in a month," García, a manager who spoke on condition of anonymity to protect his job, recently shared with Al Jazeera, describing a stark shift from pre-pandemic days when deliveries arrived three times monthly. Shipments had already slowed to once a month over the past few years.
Now, even that infrequent pace is uncertain. This specific policy, enacted by the Trump administration in January, targeted the crucial flow of crude oil into the island nation. President Donald Trump threatened tariffs against any country supplying fossil fuels to Cuba.
He also issued a direct order for Venezuela to cease all oil shipments. The island typically relies on foreign imports for nearly 60 percent of its total crude supply. This reliance has become a critical vulnerability.
Only one Russian oil tanker managed to reach Cuba in the months since the blockade began, offering a brief respite in March. Analysts estimated the tanker's 730,000 barrels could power the country for little more than a week. The immediate consequence for ordinary Cubans has been widespread power outages, including three total collapses of the electricity grid this year.
These blackouts halt daily life. For Elena Herrera, a 56-year-old cigar roller, these energy shortfalls translate into a four-kilometer walk home each day. Public transport, paralyzed by the lack of fuel, offers no alternative.
Herrera, who has rolled cigars for 16 years, works six days a week in a state-run factory. Her wages, she explained, have not increased since the COVID-19 pandemic, leaving her with just 6,000 Cuban pesos per month, approximately $12 on Havana's informal currency market. "The policy says one thing. The reality says another," Herrera lamented, gesturing towards a derelict bus.
This is what this actually means for your family. Beyond the daily commute, the energy crisis has complicated the cultivation of the tobacco crops themselves. In Pinar del Rio, the main growing province, about 50 percent of tobacco fields rely on electrified irrigation systems, according to the Cuban government.
Without consistent power, these systems fail. Manufacturing also faces severe limitations. Dried tobacco leaves must be driven to Havana for hand-rolling in state-run factories.
However, petrol scarcity makes transportation difficult, and factories struggle to operate without electricity for lighting and machinery. Sheldon Lloyd Smith, President of the Cigar Association of Canada, confirmed the operational challenges. "Fuel shortages, blackouts, and transport constraints are making it increasingly difficult for factories to operate consistently," he told Al Jazeera. The Cuban government itself acknowledged the setback in February, announcing the suspension of Havana's annual cigar festival.
They cited the oil blockade and the “complex economic situation facing the country.”
Despite these mounting difficulties, tobacco remains Cuba's top export, generating nearly $827 million in revenue for the government in 2024. This demand is largely linked to the prestige associated with Cuban cigars. Lloyd Smith noted that many people automatically think of Cuban cigars when they consider the product.
This reputation for exclusivity has been reinforced by their illegal status in the US, a result of the long-standing embargo. That trade embargo largely began in response to the 1959 Cuban Revolution, which ushered in the island's communist government. The new regime quickly nationalized the island's industries, including traditional tobacco brands like Montecristo and Romeo y Julieta.
New premium brands, such as Cohiba—a favorite of the late Fidel Castro—were subsequently launched. However, the US blockade now exacerbates existing vulnerabilities within an industry already facing multiple supply-side shocks. In September 2022, Hurricane Ian ravaged Pinar del Rio, damaging as many as 90 percent of the province’s tobacco curing barns, essential for drying the leaves.
That season saw only 5,150 hectares (13,725 acres) of tobacco planted, the lowest level since records began. Tobacco growth has remained sluggish. Just last month, the Cuban government announced it had failed to meet its target for the 2025-2026 growing season, set at 12,152 hectares (30,028 acres), a goal already revised down due to heavy rains.
These combined crises have lowered cigar supplies, both domestically and internationally. In 2024, the island exported 50 million cigars, a significant drop from the 93.9 million shipped abroad in 2018, according to Tabacuba, the state-owned tobacco company. While Tabacuba has not released data for the past year, industry insiders report even further slowdowns in recent months.
Chetan Seth, president of Cingari, India’s only Cuban cigar importer, told Al Jazeera that "international logistics have slowed down the delivery of cigars," though he maintained that "stocks are available."
In response to weakened production, state companies like exporter Habanos SA have tried to insulate themselves by hiking product costs. Brooks Whittington, a writer for the cigar industry blog Halfwheel, pointed out the dramatic price increases. In Spain, a major importer of Habanos, a single Cohiba Siglo VI now sells for 105 euros ($122), a substantial rise from 37.80 euros ($44) in January 2022.
That is a roughly 178 percent increase. "They have to raise prices in order to get those numbers up because they just don't have the number of cigars that they used to any more," Whittington explained. Yet, this rising revenue has not translated into better conditions for workers like Elena Herrera. Her monthly wage, approximately $12, contrasts sharply with the $116 retail price of a Cohiba Siglo VI in Havana—nearly ten times her entire monthly income.
Both sides claim victory. Here are the numbers. The economic reality for those on the ground remains harsh.
She spoke with a weariness that only constant struggle can etch onto a person. "We don’t have electricity, gas, water, food," Herrera stated, highlighting the multifaceted nature of the crisis. A lack of skilled workers further lowers the cigar industry's productivity, with few replacements for older employees like Herrera. Since the COVID-19 pandemic, Cuba has experienced one of its most dramatic population declines in modern history, with as much as a quarter of the population fleeing the country.
Whittington attributes these labor shortages in the tobacco industry to this "mass exodus." Lloyd Smith noted that some cigar factories operate with only a fifth of their usual workforce. "The young people have no hope," Herrera said. "They don’t have any options."
Why It Matters: This oil blockade illustrates how geopolitical tensions directly impact working families and key industries. For Cubans, it means daily struggles for basic necessities and a feeling of deepening desperation, threatening the very fabric of their society. For the US, it underscores the human cost of policies intended to pressure governments, about efficacy when the burden falls on ordinary citizens and a historic industry.
Key Takeaways: - The Trump administration's oil blockade has created severe fuel shortages in Cuba since January, crippling daily life and industrial operations. - Cuba's iconic cigar industry faces significant production challenges due to power outages, transportation issues, and previous environmental damage. - While cigar prices have soared internationally, workers like Elena Herrera see no wage increases, earning about $12 monthly. - A mass exodus of Cubans, combined with an aging workforce, contributes to critical labor shortages in cigar factories. With the US chokehold on Cuba's oil supply showing little sign of easing, the island’s cigar industry remains under intense strain. Some cigar experts believe Tabacuba’s strategy of raising prices to offset weak production is unsustainable over the long term. "I don't know how much further they can push it," Whittington said. "They can increase prices as much as they want, but at some point, people are going to start pushing back." He added that climate change, labor shortages, and chronic crises are only likely to worsen the situation.
Meanwhile, regional competitors like Nicaragua and the Dominican Republic are seeing soaring demand for their lower-priced cigars. However, others speculate the US blockade could make Habanos rarer and therefore more valuable, as the Cuban government leverages their scarcity to continue hiking prices. "There's always going to be someone with the money willing to pay," Lloyd Smith said, noting "huge demand for the collectors to buy up everything they possibly can." Workers like Herrera, though, say the blockade only deepens their hardships. "I’m 56 years old. I remember the 1990s, the special period, under Fidel," Herrera said, referencing a decade-long economic depression. "This is much worse."
Key Takeaways
— - The Trump administration's oil blockade has created severe fuel shortages in Cuba since January, crippling daily life and industrial operations.
— - Cuba's iconic cigar industry faces significant production challenges due to power outages, transportation issues, and previous environmental damage.
— - While cigar prices have soared internationally, workers like Elena Herrera see no wage increases, earning about $12 monthly.
— - A mass exodus of Cubans, combined with an aging workforce, contributes to critical labor shortages in cigar factories.
Source: Al Jazeera
